Tompkins Financial Corporation Reports Increased Fourth Quarter Earnings and Record Full Year Results

ITHACA, N.Y.--()--Tompkins Financial Corporation (NYSEMKT:TMP)

Tompkins Financial Corporation reported record diluted earnings per share of $3.87 for the year ended December 31, 2015, up 11.2% from $3.48 per share reported for the year ended December 31, 2014. The Company reported diluted earnings per share of $0.92 for the fourth quarter of 2015, an increase of 8.2% from the $0.85 reported for the fourth quarter of 2014.

Year-to-date results in 2015 included a non-recurring income item, which is more fully described in the non-GAAP disclosure tables included in this press release. Excluding this non-recurring item, diluted earnings per share for the year-to-date period ended December 31, 2015 reflected an increase of 4.3%.

President and CEO, Stephen S. Romaine said "We are pleased to report on continued strong earnings performance for the current quarter and annual periods. 2015 was our third consecutive year of record earnings. Strong growth in the loan portfolio was a key driver of our success during the current year, which helped offset the negative impact of a declining net interest margin.”

SELECTED HIGHLIGHTS FOR FOURTH QUARTER:

  • Year end loan balances were up 11.2% over December 31, 2014, and are up 3.8% over the most recent prior quarter end.
  • Noninterest-bearing deposits were up 11.3% compared to prior year-end, and up 2.4% compared to the most recent prior quarter.
  • Credit quality continues to improve with nonperforming assets down 13.3% compared to the fourth quarter of 2014, and down 7.3% compared to third quarter of 2015.
  • Criticized and Classified loan balances were down 33.8% from the fourth quarter of 2014, and down 21.1% compared to third quarter of 2015.
  • Net interest income for the fourth quarter of 2015 was up 4.2% compared to fourth quarter of 2014, and up 2.5% compared to the most recent prior quarter.
  • Tangible book value per share increased 7.1% from the fourth quarter of 2014, and was down 0.6% from the most recent prior quarter. Refer to Non-GAAP disclosure for additional details on tangible book value per share.

NET INTEREST INCOME

Net interest income of $43.4 million for the fourth quarter of 2015 reflected an increase of 2.5% when compared to the most recent prior quarter end, and an increase of 4.2% when compared to the same period in 2014. Year-to-date net interest income of $168.4 million was up 2.8% compared to the same period in 2014. Growth in loans helped offset the decline in the net interest margin, which was 3.35% for the fourth quarter 2015 and prior quarter, and 3.53% for the fourth quarter 2014.

Average loan balances for the year ended December 31, 2015, were up 9.0%, and average deposit balances were up 4.7% compared to average balances for the year ended December 31, 2014.

NONINTEREST INCOME

Noninterest income represented 29.9% of total revenues for the year ended December 31, 2015, compared to 30.2% in 2014. Noninterest income was $17.9 million for the fourth quarter of 2015, and $71.9 million year-to-date, down 0.8% and up 1.7%, respectively, when compared to the same periods last year. Contributing to the year-to-date growth were an increase in insurance revenue of $797,000, an increase in net gains on the sale of securities of $717,000, and an increase in net gains on the sale of other real estate owned of $355,000.

NONINTEREST EXPENSE

Noninterest expense was $39.4 million for the fourth quarter of 2015, which was in line with the same period last year. Year-to-date noninterest expense of $149.9 million was down 3.1% compared to the year-to-date period in 2014. Year-to-date results included a $6.0 million gain on a pension plan curtailment recorded in the second quarter of 2015. The curtailment gain is related to a freeze of the Company’s defined benefit pension plan, which has been replaced with a more flexible defined contribution pension plan.

ASSET QUALITY

Asset quality remained strong in the fourth quarter of 2015. Fourth quarter nonperforming assets were down 13.3% compared to same period in 2014, and down 7.3% compared to the most recent prior quarter end. Nonperforming assets represented 0.43% of total assets at December 31, 2015, down from 0.47% at the prior quarter end, and 0.54% at the prior year end. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.97%. Substandard and Special Mention loan balances decreased by 32.3% compared to year end 2014, and by 19.3% compared to the most recent prior quarter.

Provision for loan and lease losses was $1.5 million for the current quarter, and $2.9 million for the full year ended December 31, 2015, compared to $1.6 million and $2.3 million for the respective periods in 2014. The year-over-year increase in provision expense is primarily due to growth in the loan portfolio.

The Company’s allowance for originated loan and lease losses increased to $31.3 million at December 31, 2015, up from $28.2 million at December 31, 2014. This increase in the allowance is mainly due to loan growth and is partially offset by improved asset quality. This allowance represented 0.95% of originated loans and leases at December 31, 2015, compared to 0.99% a year earlier. The total allowance represented 146.74% of total nonperforming loans and leases at December 31, 2015, up from 128.4% at December 31, 2014.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets of 8.82% is up from 8.75% at December 31, 2014. The ratio of tangible common equity to tangible assets (refer to Non-GAAP disclosures) of 7.37% was in line with the 7.40% reported at December 31, 2014.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

NON-GAAP MEASURES

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. See “Tompkins Financial Corporation - Summary Financial Data (Unaudited)” tables for Non-GAAP related calculations.

"Safe Harbor" Statement under the Private Securities Litigation Reform of 1995:

This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.

     

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION

 
(In thousands, except share and per share data) (Unaudited) As of As of
ASSETS 12/31/2015 12/31/2014
 
Cash and noninterest bearing balances due from banks $ 56,261 $ 53,921
Interest bearing balances due from banks       1,996     2,149
Cash and Cash Equivalents 58,257 56,070
 
Trading securities, at fair value 7,368 8,992
Available-for-sale securities, at fair value (amortized cost of $1,390,255 at December 31,
2015 and $1,397,458 at December 31, 2014) 1,385,684 1,402,236
Held-to-maturity securities, at amortized cost (fair value of $146,686 at December 31, 2015
and $89,036 at December 31, 2014) 146,071 88,168
Originated loans and leases, net of unearned income and deferred costs and fees (2) 3,310,768 2,839,974
Acquired loans and leases, covered (3) 14,031 19,319
Acquired loans and leases, non-covered (3) 447,243 533,995
Less: Allowance for loan and lease losses       32,004     28,997
Net Loans and Leases 3,740,038 3,364,291
 
FDIC indemnification asset 158 1,903
Federal Home Loan Bank stock 29,969 21,259
Bank premises and equipment, net 60,331 59,800
Corporate owned life insurance 75,792 73,725
Goodwill 91,792 92,243
Other intangible assets, net 12,448 14,649
Accrued interest and other assets       82,087     86,225
Total Assets     $ 5,689,995   $ 5,269,561
 
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market 2,401,519 2,247,708
Time 855,133 898,081
Noninterest bearing       1,138,654     1,023,365
Total Deposits 4,395,306 4,169,154
 
Federal funds purchased and securities sold under agreements to repurchase 136,513 147,037
Other borrowings, including certain amounts at fair value of $10,576 at December 31, 2015
and $10,961 at December 31, 2014 536,285 356,541
Trust preferred debentures 37,509 37,337
Other liabilities       67,916     69,909
Total Liabilities     $ 5,173,529   $ 4,779,978
 
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
15,015,594 at December 31, 2015; and 14,931,354 at December 31, 2014 1,502 1,493
Additional paid-in capital 350,823 348,889
Retained earnings 197,445 165,160
Accumulated other comprehensive loss (31,001) (24,011)
Treasury stock, at cost – 113,787 shares at December 31, 2015, and 111,436 shares
at December 31, 2014 (3,755) (3,400)
 
Total Tompkins Financial Corporation Shareholders’ Equity 515,014 488,131
Noncontrolling interests       1,452     1,452
Total Equity     $ 516,466   $ 489,583
Total Liabilities and Equity     $ 5,689,995   $ 5,269,561
 
 

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 
    Three Months Ended   Twelve Months Ended
(In thousands, except per share data) (Unaudited) 12/31/2015   12/31/2014 12/31/2015   12/31/2014
INTEREST AND DIVIDEND INCOME
Loans $ 39,966 $ 38,366 $ 154,636 $ 150,966
Due from banks 1 0 4 2
Trading securities 82 97 352 418
Available-for-sale securities 7,306 7,661 29,525 31,298
Held-to-maturity securities 915 373 3,100 999
Federal Home Loan Bank stock and Federal Reserve Bank stock       295     194     1,129     810
Total Interest and Dividend Income       48,565     46,691     188,746     184,493
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more 309 348 1,367 1,370
Other deposits 2,247 2,388 9,084 9,711
Federal funds purchased and securities sold under agreements to
repurchase 689 684 2,709 2,947
Trust preferred debentures 582 573 2,308 2,287
Other borrowings       1,301     1,006     4,897     4,368
Total Interest Expense       5,128     4,999     20,365     20,683
Net Interest Income       43,437     41,692     168,381     163,810
Less: Provision for loan and lease losses       1,533     1,555     2,945     2,306
Net Interest Income After Provision for Loan and Lease Losses       41,904     40,137     165,436     161,504
NONINTEREST INCOME
Insurance commissions and fees 6,945 6,666 29,286 28,489
Investment services income 3,898 3,945 15,416 15,493
Service charges on deposit accounts 2,513 2,394 9,325 9,404
Card services income 1,993 1,974 7,837 7,942
Mark-to-market loss on trading securities (89) (89) (295) (269)
Mark-to-market gain on liabilities held at fair value 159 71 385 331
Other income 2,488 2,854 8,878 8,984
Gain on sale of available-for-sale securities       3     241     1,108     391
Total Noninterest Income       17,910     18,056     71,940     70,765
NONINTEREST EXPENSES
Salaries and wages 18,388 17,699 72,707 69,558
Pension and other employee benefits 5,182 5,138 16,025 21,102
Net occupancy expense of premises 3,009 2,908 12,312 12,203
Furniture and fixture expense 1,681 1,461 6,146 5,708
FDIC insurance 774 678 2,992 2,906
Amortization of intangible assets 510 525 2,013 2,095
Other operating expense       9,826     10,609     37,667     41,121
Total Noninterest Expenses       39,370     39,018     149,862     154,693
Income Before Income Tax Expense       20,444     19,175     87,514     77,576
Income Tax Expense       6,557     6,453     28,962     25,404
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation       13,887     12,722     58,552     52,172
Less: Net income attributable to noncontrolling interests       33     33     131     131
Net Income Attributable to Tompkins Financial Corporation     $ 13,854   $ 12,689   $ 58,421   $ 52,041
Basic Earnings Per Share $ 0.93 $ 0.86 $ 3.91 $ 3.51
Diluted Earnings Per Share     $ 0.92   $ 0.85   $ 3.87   $ 3.48
 
 
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
                 
Quarter Ended Year to Date Period Ended Year to Date Period Ended
      December 31, 2015     December 31, 2015     December 31, 2014
Average Average Average
Balance Average Balance Average Balance Average
(Dollar amounts in thousands)     (QTD)     Interest   Yield/Rate     (YTD)     Interest   Yield/Rate     (YTD)     Interest   Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks $ 2,070 $ 1 0.19% $ 1,812 $ 4 0.22% $ 1,014 $ 2 0.20%
Securities (4)
U.S. Government securities 1,441,597 7,693 2.12% 1,441,420 30,500 2.12% 1,332,449 30,384 2.28%
Trading securities 7,621 82 4.32% 8,231 352 4.28% 10,068 418 4.15%
State and municipal (5) 93,425 823 3.49% 88,504 3,308 3.74% 85,402 3,290 3.85%
Other securities (5) 3,917     30   3.04%     3,785     121   3.20%     4,489     139   3.10%
Total securities 1,546,560 8,628 2.21% 1,541,940 34,281 2.22% 1,432,408 34,231 2.39%
FHLBNY and FRB stock 24,861 295 4.71% 24,046 1,129 4.70% 19,168 810 4.23%
 
Total loans and leases, net of unearned income (5)(6) 3,687,488     40,675   4.38%     3,531,945     157,222   4.45%     3,238,992     152,958   4.72%
Total interest-earning assets 5,260,979     49,599   3.74%     5,099,743     192,636   3.78%     4,691,582     188,001   4.01%
 
Other assets 363,372 355,471 375,073
 
Total assets 5,624,351 5,455,214 5,066,655
                                                 
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market 2,453,336 957 0.15% 2,363,087 3,821 0.16% 2,286,707 4,312 0.19%
Time deposits 867,140     1,599   0.73%     895,391     6,630   0.74%     904,040     6,769   0.75%
Total interest-bearing deposits 3,320,476 2,556 0.31% 3,258,478 10,451 0.32% 3,190,747 11,081 0.35%
 
Federal funds purchased & securities sold under
agreements to repurchase 143,389 689 1.91% 137,917 2,709 1.96% 145,876 2,947 2.02%
Other borrowings 429,361 1,301 1.20% 417,737 4,897 1.17% 251,312 4,368 1.74%
Trust preferred debentures 37,481     582   6.16%     37,417     2,308   6.17%     37,249     2,287   6.14%
Total interest-bearing liabilities 3,930,707 5,128 0.52% 3,851,549 20,365 0.53% 3,625,184 20,683 0.57%
 
Noninterest bearing deposits 1,107,370 1,029,545 903,628
Accrued expenses and other liabilities 67,745 66,366 54,244
Total liabilities 5,105,822 4,947,460 4,583,056
 
Tompkins Financial Corporation Shareholders’ equity 516,988 506,243 482,087
Noncontrolling interest 1,541 1,511 1,512
Total equity 518,529 507,754 483,599
 
Total liabilities and equity $ 5,624,351 $ 5,455,214 $ 5,066,655
Interest rate spread     3.22%     3.25%     3.44%
Net interest income/margin on earning assets 44,471 3.35% 172,271 3.38% 167,318 3.57%
 
Tax Equivalent Adjustment (1,034) (3,890) (3,508)
 
Net interest income per consolidated financial statements         $ 43,437             $ 168,381             $ 163,810    
 
 
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
                                   
(In thousands, except per share data)   Quarter-Ended   Year-Ended
  Dec-15     Sep-15     Jun-15     Mar-15     Dec-14     Dec-15
         
Period End Balance Sheet                                    
Securities   $ 1,539,123   $ 1,542,332   $ 1,536,374   $ 1,555,597   $ 1,499,396   $ 1,539,123
Originated loans and leases, net of unearned income and deferred costs and fees (2)     3,310,768     3,149,386     3,013,968     2,898,533     2,839,974     3,310,768
Acquired loans and leases (3)     461,274     484,927     507,963     529,024     553,314     461,274
Allowance for loan and lease losses     32,004     30,965     30,091     29,485     28,997     32,004
Total assets     5,689,995     5,594,718     5,436,136     5,357,533     5,269,561     5,689,995
Total deposits     4,395,306     4,437,073     4,204,089     4,282,766     4,169,154     4,395,306
Federal funds purchased and securities sold under agreements to repurchase     136,513     134,941     131,063     135,769     147,037     136,513
Other borrowings     536,285     398,946     493,326     330,850     356,541     536,285
Trust preferred debentures     37,509     37,466     37,423     37,380     37,337     37,509
Total common equity     515,014     516,409     503,877     502,811     488,131     515,014
Total equity     516,466     517,959     505,394     504,296     489,583     516,466
 
Average Balance Sheet                                    
Average earning assets   $ 5,260,979   $ 5,138,665   $ 5,038,586   $ 4,956,972   $ 4,799,027   $ 5,099,743
Average assets     5,624,351     5,486,645     5,391,114     5,315,002     5,193,347     5,455,214
Average interest-bearing liabilities     3,930,707     3,856,025     3,835,430     3,782,355     3,668,311     3,851,549
Average equity     518,529     509,518     505,667     497,047     495,531     507,754
 
Share data                                    
Weighted average shares outstanding (basic)     14,719,394     14,739,915     14,751,844     14,701,397     14,639,631     14,728,193
Weighted average shares outstanding (diluted)     14,869,103     14,866,735     14,878,107     14,837,935     14,765,855     14,863,026
Period-end shares outstanding     14,979,684     14,905,576     14,942,107     14,962,079     14,895,444     14,979,684
Common equity book value per share   $ 34.38   $ 34.65   $ 33.72   $ 33.61   $ 32.77   $ 34.38
Tangible book value per share (Non-GAAP)   $ 27.48   $ 27.64   $ 26.71   $ 26.56   $ 25.66   $ 27.48
 
Income Statement                                    
Net interest income   $ 43,437   $ 42,386   $ 41,330   $ 41,228   $ 41,692   $ 168,381
Provision (Credit) for loan/lease losses     1,533     281     922     209     1,555     2,945
Noninterest income     17,910     17,422     18,962     17,646     18,056     71,940
Noninterest expense     39,370     37,882     32,918     39,692     39,018     149,862
Income tax expense     6,557     7,115     9,030     6,260     6,453     28,962
Net income attributable to Tompkins Financial Corporation     13,854     14,497     17,390     12,680     12,689     58,421
Noncontrolling interests     33     33     32     33     33     131
Basic earnings per share (9)   $ 0.93   $ 0.97   $ 1.16   $ 0.85   $ 0.86   $ 3.91
Diluted earnings per share (9)   $ 0.92   $ 0.96   $ 1.15   $ 0.84   $ 0.85   $ 3.87
 
Nonperforming Assets                                    
Originated nonaccrual loans and leases   $ 13,506   $ 14,821   $ 14,566   $ 13,811   $ 14,299   $ 13,506
Acquired nonaccrual loans and leases     4,331     4,908     5,030     4,683     4,729     4,331
Originated loans and leases 90 days past due and accruing     58     57     58     236     106     58
Troubled debt restructurings not included above     3,915     3,465     1,939     1,589     3,444     3,915
Total nonperforming loans and leases     21,810     23,251     21,593     20,319     22,578     21,810
OREO (8)     2,692     3,188     2,570     5,816     5,683     2,692
Total nonperforming assets   $ 24,502   $ 26,439   $ 24,163   $ 26,135   $ 28,261   $ 24,502
 
                                 
  Quarter-Ended   Year-Ended
Delinquency - Originated loan and lease portfolio     Dec-15     Sep-15     Jun-15     Mar-15     Dec-14     Dec-15
Loans and leases 30-89 days past due and                                    
accruing (2)   $ 3,280   $ 3,550   $ 3,315   $ 2,438   $ 6,849   $ 3,280
Loans and leases 90 days past due and accruing (2)     58     57     58     236     106     58
Total originated loans and leases past due and accruing (2)     3,338     3,607     3,373     2,674     6,955     3,338
 
Delinquency - Acquired loan and lease portfolio  
Covered loans and leases 30-89 days past due and accruing (3)(7)   $ 276   $ 309   $ 455   $ 547   $ 533   $ 276
Covered loans and leases 90 days or more past                                    
due and accruing (3)(7)     524     508     674     682     914     524
Non-covered loans and leases 30-89 days past
due and accruing (3)(7)     933     1,028     917     2,546     1,186     933
Non-covered loans and leases 90 days past                                    
due and accruing (3)(7)     1,991     2,069     3,031     2,811     2,614     1,991
Total acquired loans and leases past due and accruing     3,724     3,914     5,077     6,586     5,247     3,724
Total loans and leases past due and accruing   $ 7,062   $ 7,521   $ 8,450   $ 9,260   $ 12,202   $ 7,062
 
Allowance for Loan Losses - Originated loan and lease portfolio  
Balance at beginning of period   $ 30,450   $ 29,428   $ 28,690   $ 28,156   $ 27,185   $ 28,156
Provision for loan and lease losses     1,185     173     769     340     1,102     2,467
Net loan and lease charge-offs (recoveries)     323     (849)     31     (194)     131     (689)
Allowance for loan and lease losses (originated 31,312 30,450 29,428 28,690 28,156 31,312
loan portfolio) - balance at end of period   $   $   $   $   $   $
 
Allowance for Loan Losses - Acquired loan and lease portfolio  
Balance at beginning of period   $ 515   $ 663   $ 795   $ 841   $ 601   $ 841
Provision (Credit) for loan and lease losses     348     108     153     (131)     453     478
Net loan and lease charge-offs (recoveries)     171     256     285     (85)     213     627
Allowance for loan and lease losses (acquired                                    
loan portfolio) - balance at end of period     692     515     663     795     841     692
                                     
Total allowance for loan and lease losses   $ 32,004   $ 30,965   $ 30,091   $ 29,485   $ 28,997   $ 32,004
                                     
Loan Classification - Originated Portfolio                                    
Special Mention   $ 19,657   $ 25,133   $ 25,706   $ 34,965   $ 36,331   $ 19,657
Substandard     18,186     19,937     21,600     19,150     19,970     18,186
Loan Classification - Acquired Portfolio                                    
Special Mention     540     1,446     1,589     5,053     5,758     540
Substandard     17,007     23,683     21,932     21,752     21,567     18,238
Loan Classifications - Total Portfolio                                    
Special Mention     20,197     26,579     27,295     40,018     42,089     20,197
Substandard     35,193     43,620     43,532     40,902     41,537     36,424
 
                                 
RATIO ANALYSIS   Quarter-Ended   Year-Ended
Credit Quality     Dec-15     Sep-15     Jun-15     Mar-15     Dec-14     Dec-15
Nonperforming loans and leases/total loans and leases (7)     0.58%     0.64%     0.61%     0.59%     0.67%     0.58%
Nonperforming assets/total assets     0.43%     0.47%     0.44%     0.49%     0.54%     0.43%
Allowance for originated loan and lease losses/total originated loans and leases     0.95%     0.97%     0.98%     0.99%     0.99%     0.95%
Allowance/nonperforming loans and leases     146.74%     133.18%     139.36%     145.11%     128.43%     146.74%
Net loan and lease losses (recoveries) annualized/total average loans and leases     0.05%     (0.07%)     0.04%     (0.03%)     0.04%     (0.00%)
 
Capital Adequacy (period-end)                                    
Tier 1 capital / average assets *     8.82%     8.89%     8.92%     8.85%     8.75%     8.82%
Total capital / risk-weighted assets *     13.03%     13.29%     13.46%     13.37%     13.60%     13.03%
*Beginning with March 31, 2015, ratios are calculated utilizing Basel III regulatory capital framework
 
Profitability                                    
Return on average assets *     0.98%     1.05%     1.29%     0.97%     0.97%     1.07%
Return on average equity *     10.63%     11.29%     13.79%     10.35%     10.16%     11.51%
Net interest margin (TE) *     3.35%     3.35%     3.37%     3.45%     3.53%     3.38%
* Quarterly ratios have been annualized
 
Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share                        
Net income available to common shareholders   $ 13,854   $ 14,497   $ 17,390   $ 12,680   $ 12,689   $ 58,421
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards     229     189     234     182     150     834
Adjusted net income available to common shareholders     13,625     14,308     17,156     12,498     12,539     57,587
Gain on pension plan curtailment (net of tax)     0     0     (3,602)     0     0     (3,602)
Net operating income (Non-GAAP)     13,625     14,308     13,554     12,498     12,539     54,349
Weighted average shares outstanding (diluted)     14,869,103     14,866,735     14,878,107     14,837,935     14,765,855     14,863,026
Adjusted diluted earnings per share (Non-GAAP) (9)   $ 0.92   $ 0.96   $ 0.91   $ 0.84   $ 0.85   $ 3.66
 
Non-GAAP Disclosure - Tangible Common Equity / Tangible Assets                        
Total Common equity   $ 515,014   $ 516,409   $ 503,877   $ 502,811   $ 488,131   $ 515,014
Less: Goodwill and intangibles (10)     103,347     104,349     104,845     105,344     105,852     103,347
Tangible common equity     411,667     412,060     399,032     397,467     382,279     411,667
Total assets     5,689,995     5,594,718     5,436,136     5,357,533     5,269,561     5,689,995
Less: Goodwill and intangibles (10)     103,347     104,349     104,845     105,344     105,852     103,347
Tangible assets     5,586,648     5,490,369     5,331,291     5,252,189     5,163,709     5,586,648
Tangible common equity / tangible assets (Non-GAAP)     7.37%     7.51%     7.48%     7.57%     7.40%     7.37%
 
                                 
Non-GAAP Disclosure - Return on Average   Quarter-Ended   Year-Ended
Tangible Common Equity     Dec-15     Sep-15     Jun-15     Mar-15     Dec-14     Dec-15
Net income available to common shareholders   $ 13,854   $ 14,497   $ 17,390   $ 12,680   $ 12,689   $ 58,421
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards     229     189     234     182     150     834
Adjusted net income available to common shareholders     13,625     14,308     17,156     12,498     12,539     57,587
Gain on pension plan curtailment (net of tax)     0     0     (3,602)     0     0     (3,602)
Net operating income (Non-GAAP)     13,625     14,308     13,554     12,498     12,539     54,349
Amortization of intangibles (net of tax)     306     298     300     304     315     1,208
Adjusted net operating income (Non-GAAP)     13,931     14,606     13,854     12,802     12,854     55,557
Average common equity     516,988     507,984     504,166     495,579     493,986     506,243
Less: Average goodwill and intangibles (10)     103,963     104,633     105,130     105,644     106,151     104,837
Average tangible common equity capital     413,025     403,351     399,036     389,935     387,835     401,406
Adjusted operating return on average tangible common equity (annualized) (Non-GAAP)     13.39%     14.37%     13.93%     13.32%     13.15%     14.07%
 
Non-GAAP Disclosure - Tangible Book Value Per Share      
Total common equity   $ 515,014   $ 516,409   $ 503,877   $ 502,811   $ 488,131   $ 515,014
Less: Goodwill and intangibles (10)     103,347     104,349     104,845     105,344     105,852     103,347
Tangible common equity     411,667     412,060     399,032     397,467     382,279     411,667
Ending shares outstanding     14,979,684     14,905,576     14,942,107     14,962,079     14,895,444     14,979,684
Tangible book value per share (Non-GAAP)   $ 27.48   $ 27.64   $ 26.71   $ 26.56   $ 25.66   $ 27.48
 
                 
Non-GAAP Disclosure - YTD adjusted diluted earnings per share
        Dec-15   Dec-14
Net income available to common shareholders   $ 58,421   $ 52,041
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards     834     503
Adjusted net income available to common shareholders     57,587     51,538
Gain on pension plan curtailment     (3,602)     0
Net operating income (Non-GAAP)     53,985     51,538
Weighted average shares outstanding (diluted)     14,863,026     14,789,624
Adjusted diluted earnings per share (Non-GAAP)   $ 3.63   $ 3.48
   
 

(1)

Federal Reserve peer ratio as of September 30, 2015, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.

(2)

"Originated" equals loans and leases not included by definition in "acquired loans".

(3)

"Acquired Loans and Leases" equals loans and leases acquired at fair value, accounted for in accordance with FASB ASC Topic 805. "Covered Loans" are loans for which the Company will share losses with the FDIC and consist of loans VIST Bank acquired as part of an FDIC-assisted transaction during the fourth quarter of 2010.

(4)

Average balances and yields on available-for-sale securities are based on historical amortized cost.

(5)

Interest income includes the tax effects of taxable-equivalent basis.

(6)

Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company's consolidated financial statements included in Part I of the Company's annual report on Form 10-K for the fiscal year ended December 31, 2014.

(7)

Certain acquired loans and leases that are past due are not on nonaccrual and are not included in nonperforming loans. The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair value and these loans are considered accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows.

(8)

Includes all other real estate owned, including those balances acquired through business combinations.

(9)

Earnings per share year-to-date may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.

(10)

"Goodwill and intangibles" equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.

 

Contacts

Tompkins Financial Corporation
Stephen S. Romaine, 888-503-5753
President & CEO
or
Francis M. Fetsko, 888-503-5753
Executive VP, CFO & COO

Contacts

Tompkins Financial Corporation
Stephen S. Romaine, 888-503-5753
President & CEO
or
Francis M. Fetsko, 888-503-5753
Executive VP, CFO & COO